Six years ago, VTT published the Exponential hope list of technologies in which Finland has particular expertise, and which could help create a sustainability leap and solve global challenges. Small modular reactors (SMRs) for district heating were included, and a three‑step path forward was outlined: creating business, developing competences and technologies, and combining the technologies required for industrial operations and applications.
Over six years, VTT researchers developed a district heating reactor concept that Steady Energy – spun out from VTT – is now commercializing. When innovation has progressed so far that a startup emerges, many challenges have already been solved and the impact of research becomes clearly visible: this will be used, this will become reality. A startup born from research creates new business and partnerships, employs experts and industry, and attracts investment to Finland. As it grows, it may even enable an entirely new industrial sector to emerge.
Steady Energy has raised over EUR 30 million in investments and is building its first non-nuclear test facility in the former coal power plant premises in Salmisaari, Helsinki. Finland has gained a new growth company that offers a genuine alternative to combustion‑based heat production. For example, in the EU, half of the energy consumed by households goes to heating, and most of this is produced with fossil fuels. Biomass, in turn, could be used in higher‑value applications instead of burning.
Last year was a turning point for SMRs. The first investment decisions were seen globally. Four BWRX‑300 reactors will be built in Darlington, Canada. There is genuine interest in launching projects also in Sweden, England, and Poland.
There are several SMR technologies, and dozens of different plant concepts worldwide. Not all will be built. The most mature technology is the light‑water reactor technology, on which Steady Energy’s LDR‑50 reactor is also based. The technology is similar to today’s large nuclear power plants – it has the most licensing and operational experience, and the supply chains are already largely in place.
At VTT, we continue to support the development of the LDR‑50 small reactor concept and are a partial owner of Steady Energy. The concept represents Finnish research expertise at its best – a district‑heating nuclear reactor can be built based on well‑tested, simpler‑than‑competitors solutions. Thanks to straightforward and safe solutions, plants can be located close to district heating networks and residential areas. Finland has already made changes to nuclear energy regulations that make this possible. The technology can be sold not only in Finland but also widely in Eastern and Northern Europe – and more broadly around the world.
Now is Finland’s moment to show that small reactors can be built and deployed in a commercially viable way. VTT’s goal is to be a driving force for economic growth based on sustainable innovations. This is a promising technology worth long‑term investment.